Cute, But Not Amused

Posted: December 2, 2008 in Economy

Ford unveils turnaround plan

NEW YORK ( — Ford Motor became the first of the three U.S. automakers to unveil its turnaround plans to Congress Tuesday, but the plan contained little in the way of new cost cuts or other changes beyond what the company had previously announced.

The company announced that the salary of Ford CEO Alan Mulally would be cut to $1 a year if Ford (F, Fortune 500) actually borrowed money from the government. When Mulally appeared before the House Financial Services Committee last month, he did not agree to the suggestion of such a paycut.

A spokesman for General Motors (GM, Fortune 500) confirmed to CNN that CEO Rick Wagoner also will accept a $1 salary. Other details of GM’s turnaround plan were not immediately available. Chrysler LLC CEO Robert Nardelli agreed during Congressional testimony last month he would also agree to a $1 salary in return for federal help. (more…)

Some things to think about as the big 3 are banging the beggar’s cup.

Legacy Costs

The Crippling Burden of Legacy Costs: GM Is a Health Care Company That Sells Cars on the Side

CAFE Standards

“Clearly, the CAFE program has failed to accomplish its purposes. Oil imports have not decreased. In fact, they have increased from about 35 percent of supply in the mid-1970s to 52 percent today. Likewise, consumption has not decreased. As fuel efficiency improves, consumers have generally increased their driving, offsetting nearly all the gains in fuel efficiency. Not only has the CAFE program failed to meet its goals; it has had tragic even if unintended consequences. As vehicles were being made lighter to achieve more miles per gallon and meet the standards, the number of fatalities from crashes rose.” (more…)

  1. DarkStar says:

    If all car companies have to meet them, what’s the beef?

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